Investors will focus on the meeting of the European Central Bank

In the week ahead, investors will focus on the meeting of the European Central Bank, which will be held on Thursday, because it is expected that officials will boost monetary stimulus to support the economy and inflation. In the United States will be published data on the activities of the services sector in August. Analysts expected a decline of 0.5 points to 55,0.Reserva Bank of Australia will announce tomorrow the latest decision on the interest rate, but most economists do not expect a change in monetary policy after the central bank to reduce the rate of the previous meeting at the historic low of 1 , 50 percent to boost inflation and slow economic activity.China will publish trade data for August, and is expected to increase in the surplus to 58.3 billion dollars from 52.3 billion in July. It is anticipated that exports to record a drop in August by 3.5 percent, after falling 4.4 percent in July, while imports from the expected decline of 1.2 percent after rising 12.5% in July, On Friday be to publish data on Chinese inflation, consumer and producer prices in August. Since the report is expected to show a rise in consumer prices of 1.7 percent and a decline in prices of 1.0 percent.The European Central Bank will announce on Thursday a decision on interest rates, and investors will be focused on the speech President Mario Draghi at the press conference. It is anticipated that the ECB will leave interest rates at the same level, while from Draghi expects a hint of further stimulating monetary policy to soften the impact of the release of Great Britain from the European Union's economy. A recent poll of economists showed that the slow growth of the economy and inflation would force the European Central Bank to expand the scope of the program of purchasing bonds in the coming months.

The euro fell against other major currencies. The index of the service sector in the euro zone fell in the second quarter. Forex pair EUR / USD fell to 1.1164. It fell in the second quarter to 52.8 points from 53.1 in the previous quarter. It was expected to remain unchanged. Retail sales in the euro zone rose in August to 1.1 percent from 0.1 percent in the previous month, while analysts predicted growth of 0.6 percent. Against the pound, the yen, and the franc, the euro weakened. EUR / GBP dropped to 0.8380, EUR / JPY fell to 115.26, and the EUR / CHF fell to 1,0927.Index activities in the UK service sector rose to 52.9 points in August to 47, 4 in July. Economists had expected a rise to 49.1 points. Japanese average earnings remained unchanged in the second quarter to 1.4 percent, while analysts expected a drop to 0.5 percent. The single currency fell against the Canadian, Australian and New Zealand dollars. EUR / CAD fell to 1.4440, EUR / AUD fell to 1.4704 and EUR / NZD dropped to 1.5253. Gross operating profits of Australian companies rose in the second quarter by 6.9 percent after falling 4.4 percent in the previous quarter. Economists had predicted growth of 2.0 percent. The index of the euro fell by 0.12 percent to 88.79.

The dollar was mixed, mostly lower, compared to other major currencies. It is still under pressure because of data showed weaker growth in the number of new jobs created in the US. The US currency fell against the yen, pound and Swiss franc. USD / JPY dropped to 103.40, GBP / USD rose to 1.3326, and USD / CHF fell to 0.9802. USD / CAD fell to 1.2922, AUD / USD rose to 0.7578, while the NZD / USD climbed to 0.7301. The dollar index fell 0.10 percent to 95.77. Today it was a bank holiday in the US and Canada. The stocks markets are closed.

Stock prices on Asian stock markets have risen due to the weaker than expected data from the US labor market. Japanese Nikkei 225 index jumped 0.54 percent, Hang Seng index in Hong Kong finished up 1.53 percent, while Australia's S & P / ASX 200 rose by 0.92 percent. Official data in China today showed that Caixin / Markit index of the service sector rose to 52.1 in August from 51.7 in July, while the predicted growth of 51.9 points. European stocks have increased. Euro Stoxx 50 rose 0.12 percent, France's CAC 40 climbed 0.21 percent, German's DAX 30 jumped 0.39 percent, while London's FTSE 100 was higher by 0.03 percent.

The European Commission found that the German carmaker Volkswagen has violated consumer protection laws in 20 countries of the European Union, cheating on tests of emissions. The refinery in Aden in southern Yemen was again put into operation after a break of one year because of the war between the army and rebels. Chinese President Xi Jinping has called on G20 members to strengthen policy coordination in order to stimulate global growth and maintaining financial stability. The index of activity in the service sector in Germany fell in August to 51.7 points from 53.3 in the previous month. Analysts have predicted that it will remain unchanged. French service sector index rose in August to 52.3 points from 52.0 in the previous month. Economists had expected to remain unchanged. Index  activity in the services sector in Spain rose in August to 56.0 points from 54.1 in the previous month. Analysts had expected a rise to 55.1 points.

Summary

It can see lower market volatility on Monday. The Northern American markets closed today. The US dollar was under pressure. It was moved by the data from the euro zone and the UK. Better than expected data in the UK pushed higher the currency pair GBP/USD.  

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